Ranpak Holdings Corp.

What they do

Ranpak makes systems-based product protection and end-of-line automation solutions, supplying PPS systems and paper consumables to distributors and select end-users. The company operates manufacturing facilities in the United States, Europe and Asia, with dedicated Automation facilities in Shelton, Connecticut and the Netherlands, and R Squared Robotics applying 3D computer vision and AI to end-of-line packaging and logistics. All packaging solutions are described as 100% recyclable, renewable and biodegradable.

Revenue drivers

• Protective Packaging Solutions (PPS) — PPS is the core business, built on an installed base of 141.7 thousand systems at June 30, 2026, spanning cushioning, void-fill and wrapping machines. In Q2 2026 void-fill was $44.8 million, cushioning $35.1 million and wrapping $8.7 million of net revenue.
• Automation and Machine Vision — Automation equipment sales generate the fastest growth, with Q2 2026 net revenue of $16.6 million versus $7.1 million a year earlier, a 133.8% increase. Management expects nearly $60 million in Automation revenue for the year.
• Paper consumables — Paper consumables sold into the installed PPS base are a recurring revenue stream; paper is the largest input cost and prices are negotiated with suppliers largely annually.
• Cold Chain — Sales to food and beverage end-users were approximately 3% of 2025 net revenue, with fiber-based offerings such as RecyCold climaliner Plus and the naturemailer mailer representing an early-stage expansion.

Recent performance

Q2 2026 net revenue rose 14.0% year over year to $105.2 million, or 12.2% on a constant currency basis, including a $1.7 million non-cash reduction for warrants. Net loss was $7.9 million versus $7.5 million in the prior-year quarter, and Adjusted EBITDA rose 15.8% to $19.1 million. Automation net revenue increased $9.5 million to $16.6 million, void-fill rose 9.0% to $44.8 million, wrapping rose 19.2% to $8.7 million and cushioning fell 4.6% to $35.1 million. PPS system placements declined 2.3% year over year to approximately 141.7 thousand machines. For full-year 2025, net revenue was $332.7 million with a net loss of $38.3 million and operating cash flow of $23.1 million.

Strategy

Management is prioritizing Automation and higher-value differentiated solutions while reducing exposure to products it views as more commoditized. It cites capacity being built in the second half of 2026 to support longer-term revenue targets, and points to cold chain and sustainable alternatives to plastic mailers as portfolio expansion areas. The Malaysia paper conversion facility, operational since the second half of 2024, is intended to shorten lead times and improve cost position in APAC. The company says it remains disciplined on cost while pursuing top-line growth and margin improvement.

Risks

• Paper input cost and supply — Paper is the largest cost of goods sold component and is purchased from a limited number of suppliers, with management expecting continued gross margin pressure in fiscal 2026 relative to its historical margin profile.
• E-commerce and end-user concentration — Approximately 40% of net revenue comes from e-commerce end-users, so loss of end-users or reduced production requirements could materially affect results.
• Foreign currency and geopolitical exposure — About 53% of 2025 net revenue was generated outside the United States, exposing results to currency translation effects and to geopolitical conflicts and potential tariffs.
• Sustained losses and cash flow decline — The company reported net losses each year from 2021 through 2025, and operating cash flow fell from $41.4 million in 2024 to $23.1 million in 2025.

Outlook

Management stated it remains on track for a strong year in Automation, expecting nearly $60 million in Automation revenue, and continues to expect to achieve its full-year guidance. It cited volatility and uncertainty from evolving global conflicts in the near term, but said innovation in PPS, Automation and cold chain positions the business for the next several years. The company said it is building capacity in the second half of 2026 to support longer-term revenue targets.